Interest on arrears

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Interest on arrears

Lenders can set up their lending products and contracts to accrue interest for overdue payments. This is called Interest on Arrears. Interest may be calculated at different rates on the overdue principal, overdue interest, and interest on overdue interest (IOA on IOA). For more information on IOA calculation, refer to the section Charging Interest on Arrears section in the CL Loan User Guide. 

To enable this feature:

  1. Add object level access to the Flexible Amortization based product type to the required user's profile by modifying the permission set.

    1. Log in to your Salesforce account.

    2. Go to Setup, Administer, Manage Users, Profiles.

    3. Click the required profile to display the profile page. 

    4. In the Apps section, click Object Settings.

    5. Scroll down to and click CL Contracts.

    6. Click Edit.

    7. Select the Assigned Record Type checkbox for the Flexible Amz Loan record.

    8. Set up the object and field permissions, as required.

    9. Click Save.

  2. Ensure field accessibility is enabled for the Next Interest Posting Date field in the CL Contract object, for the required user profiles.  

    1. Log in to your Salesforce account.

    2. Go to Setup, Administer, Security Controls, Field Accessibility.

    3. Click on CL Contract.

    4. Click View by Fields to select the field wise view.

    5. From the drop down, select the field Next Interest Posting Date.

      The page refreshes to display the profile level access set up for the field.

    6. Make this field editable for the required page layouts and user profiles.

  3. Add the Flexible AMZ Based Product to the Product Type picklist of the CL Contract and Lending Product object. For information on steps to do this, refer to section Modify the Drop Down List

  4. Add the Next Interest Posting Date field to the CL Contract object's Amortization Based Loan Payout page layout. For information on steps to do this, refer to section Modify the Page Layout.

  5. Enable New Payment Spread in the org parameters. For information on steps to do this, refer to section Modify Org Parameters.

Recommended layout

Lending Product Layout

CL Contract Layout